Organizational Behavior conflict and negotiations Tomáš Ondráček ondracek.t@mail.muni.cz 2024 1. TYPES OF CONFLICT 1. types of conflict ·ORBE ·2024 2 / 57 1. TYPES OF CONFLICT conflict conflict Conflict is a process that begins when one party believes that the other party has negatively affected, or will negatively affect, something that the first party cares about. ·ORBE ·2024 3 / 57 1. TYPES OF CONFLICT conflict: example Example: Workplace Scenario A manager and an employee have a disagreement about deadlines. The employee feels they are too tight and will compromise quality, while the manager is focused on meeting client expectations. This leads to a conflict between their respective goals. (adapted from Robbins and Judge (2017)) ·ORBE ·2024 4 / 57 1. TYPES OF CONFLICT conflict A B C level of conflict(low) (high) unit performance (low) (high) situation level of conflict type of conflict internal characteristics units output units A low dysfunctional apathetic stagnant unresponsive to change lacking new ideas low B optimal functional viable self-critical innovative high C high dysfunctional disruptive chaotic uncooperative low (Robbins & Judge, 2017) ·ORBE ·2024 5 / 57 1. TYPES OF CONFLICT paradox of conflict and decision making (Amason, 1996: 128) ·ORBE ·2024 6 / 57 1. TYPES OF CONFLICT types of conflict: consequences dysfunctional conflict Dysfunctional conflict refers to conflict that reduces the performance of the group. functional conflict Functional conflict refers to conflict that supports the group’s goals and enhances its performance. Example: Functional conflict: A debate in a project meeting that leads to a better solution. Dysfunctional conflict: Personal disagreements disrupting team dynamics. ·ORBE ·2024 7 / 57 1. TYPES OF CONFLICT conflict types: place of origin I/II dyadic conflict Dyadic conflict refers to a conflict that occurs between two people or parties. interpersonal conflict Interpersonal conflict refers to a conflict that occurs between different persons. intrapersonal conflict Intrapersonal conflict refers to a conflict that occurs within one person between their attitudes, values, etc. ·ORBE ·2024 8 / 57 1. TYPES OF CONFLICT conflict types: place of origin II/II intergroup conflict Interpersonal conflict refers to conflict that occurs between different groups or teams. intragroup conflict Intrapersonal conflict refers to conflict that occurs within group or team. ·ORBE ·2024 9 / 57 1. TYPES OF CONFLICT types of conflict: contents task conflict Task conflict refers to conflict that relates to content and objectives work. relationship conflict Relationship conflict refers to conflict that relates to interpersonal relationships. process conflict Process conflict refers to conflict that relates to the ways in which and procedures of work. ·ORBE ·2024 10 / 57 1. TYPES OF CONFLICT types of conflict: focus affective conflict Conflict that is emotional and focused on personal grievances or disputes. cognitive conflict Conflict that is task-oriented and focused on critical differences of parties to choose the best solution to achieve common goals. (Amason, 1996: 129) ·ORBE ·2024 11 / 57 2. CONFLICT PROCESS 2. conflict process ·ORBE ·2024 12 / 57 2. CONFLICT PROCESS intention in conflict resolution intention in conflict resolution ·ORBE ·2024 13 / 57 2. CONFLICT PROCESS intention in conflict resolution dimensions of intentions in conflict (Thomas, 1992) ·ORBE ·2024 14 / 57 2. CONFLICT PROCESS intention in conflict resolution conflict resolution intention I/II collaborating Collaboration is a way of approaching conflict resolution where each party in a conflict seeks to fully satisfy the needs of all other parties. compromising Compromise is a way of approaching conflict resolution where each party in a conflict is willing to give up something. avoiding Avoidance is a way of approaching conflict resolution where the parties are willing to to withdraw or suppress the conflict. ·ORBE ·2024 15 / 57 2. CONFLICT PROCESS intention in conflict resolution conflict resolution intention II/II accomodating Accomodation is a way of approaching conflict resolution where one party is in a conflict is willing to give the interests of the other party a higher priority than its own their own interests. competing Competition is a way of approaching conflict resolution in which each side seeks to satisfy its own interests, regardless of the impact this has on other parties in the conflict. ·ORBE ·2024 16 / 57 2. CONFLICT PROCESS intention in conflict resolution BAR event intensity scale (Wolf, Yoffe, & Giordano, 2003) ·ORBE ·2024 17 / 57 2. CONFLICT PROCESS options for conflict resolution options for conflict resolution ·ORBE ·2024 18 / 57 2. CONFLICT PROCESS options for conflict resolution options for conflict resolution collaborating or problem solving compromising smoothing forcing withdraw or avoidance altering ·ORBE ·2024 19 / 57 3. NEGOTIATION 3. negotiation ·ORBE ·2024 20 / 57 3. NEGOTIATION negotiation negotiation Negotiation is a process in which two or more parties exchange goods and services in an attempt to agree on the price of the exchange. ·ORBE ·2024 21 / 57 3. NEGOTIATION types of negotiation II/III distributive bargaining Distributive bargaining is bargaining in which the parties attempt to allocate a given amount of resources. It is a win-lose situation. integrative bargaining Intergrative bargaining is bargaining in which the parties attempt to to find an agreement or agreements that can create a win-win (win-win) solution. Example: Distributive: Buyer and seller negotiate the price of a car. Integrative: Two departments negotiate resources for mutual benefit. ·ORBE ·2024 22 / 57 3. NEGOTIATION types of negotiation II/III distributive integrative goal get the most satisfy everyone motivation win-lose win-win focus positional interest interest opposition congruent sharing low high duration short long ·ORBE ·2024 23 / 57 3. NEGOTIATION distributive and integrative negotiation III/III distributive negotiations aggressive strategies anchoring time pressure ... integrative action trust compromise? ·ORBE ·2024 24 / 57 3. NEGOTIATION negotiation process negotiation process ·ORBE ·2024 25 / 57 3. NEGOTIATION negotiation process negotiation process 1. preparation 2. determining the rules 3. clarifying and confirming positions 4. bargaining and problem solving 5. conclusion and implementation ·ORBE ·2024 26 / 57 3. NEGOTIATION negotiation process salary negotiation model (Marks & Harold, 2011) ·ORBE ·2024 27 / 57 3. NEGOTIATION negotiation process BATNA The Best Alternative To a Negotiated Agreement (BATNA) The Best Alternative to a Negotiated Agreement refers to the concept that, what should be the least possible acceptable outcome of a party in a negotiation. ·ORBE ·2024 28 / 57 3. NEGOTIATION negotiation and individual differences negotiation and individual differences ·ORBE ·2024 29 / 57 3. NEGOTIATION negotiation and individual differences What influences negotiation? personality emotions culture men and women ... ·ORBE ·2024 30 / 57 4. THIRD PARTY 4. third parties ·ORBE ·2024 31 / 57 4. THIRD PARTY third parties arbitrator An arbitrator is a third party in a negotiation who has the authority to impose the parties to an agreement. mediator A mediator is a neutral third party in a negotiation who facilitates reaching a negotiated solution by using reasoning, persuasion and offering alternatives. conciliator A conciliator is a neutral third party in a negotiation who provides informal communication link between the negotiator and the opponent. ·ORBE ·2024 32 / 57 4. THIRD PARTY negotiation in a social context reputation credibility competence integrity relationships renegotiation ·ORBE ·2024 33 / 57 Discussion Scenarios Discussion Scenarios ·ORBE ·2024 34 / 57 Discussion Scenarios – Patent Dispute Scenario 1: Apple vs. Samsung – Patent Dispute ·ORBE ·2024 35 / 57 Discussion Scenarios – Patent Dispute Scenario 1: Context Context Apple and Samsung, two tech giants, engaged in a series of legal battles over patent infringement. Apple accused Samsung of copying the design and technology of its iPhone, while Samsung countered with claims of its own patents being violated. After multiple court rulings in different countries, both companies agreed to settle the case in 2018. (Program on Negotiation at Harvard Law School, 2023a, 2023b) ·ORBE ·2024 36 / 57 Discussion Scenarios – Patent Dispute Scenario 1: Discussion Questions Discussion Questions 1. How do intellectual property disputes impact innovation (in the tech industry)? 2. What negotiation strategies should Apple and Samsung have employed to resolve the issue earlier? 3. Could this conflict have been avoided through initial collaboration rather than litigation? How? ·ORBE ·2024 37 / 57 Discussion Scenarios – Patent Dispute Scenario 1: Key Learning Points Key Learning Points This scenario highlights the significance of protecting intellectual property and the financial and reputational costs of prolonged legal disputes in business. (Program on Negotiation at Harvard Law School, 2023a, 2023b) ·ORBE ·2024 38 / 57 Discussion Scenarios – Financial Crisis Settlement Scenario 2: JPMorgan and DOJ – Financial Crisis Settlement ·ORBE ·2024 39 / 57 Discussion Scenarios – Financial Crisis Settlement Scenario 2: Context Context In 2013, JPMorgan faced a lawsuit from the Department of Justice (DOJ) for its role in selling troubled mortgage securities that contributed to the 2008 financial crisis. JPMorgan’s CEO, Jamie Dimon, negotiated a settlement just before the DOJ announced legal charges. The final settlement was $13 billion, the largest in DOJ history. (Program on Negotiation at Harvard Law School, 2014) ·ORBE ·2024 40 / 57 Discussion Scenarios – Financial Crisis Settlement Scenario 2: Discussion Questions Discussion Questions 1. Was the $13 billion settlement a fair outcome for JPMorgan and +the public? Why or why not? 2. What role do power dynamics play when a corporation negotiates with a government entity? 3. How could JPMorgan have prevented this conflict? What risk management strategies might they adopt for the future? ·ORBE ·2024 41 / 57 Discussion Scenarios – Financial Crisis Settlement Scenario 2: Key Learning Points Key Learning Points This case demonstrates how high-level negotiations can mitigate legal and reputational risks, and the importance of corporate responsibility in avoiding future crises. (Program on Negotiation at Harvard Law School, 2014) ·ORBE ·2024 42 / 57 Discussion Scenarios Scenario 3: Interdepartmental Conflict Over Budget Allocation Scenario 3: Interdepartmental Conflict Over Budget Allocation ·ORBE ·2024 43 / 57 Discussion Scenarios Scenario 3: Interdepartmental Conflict Over Budget Allocation Scenario 3: Context Context In a company, the Sales and Marketing departments were in conflict over how the annual budget should be allocated. Both departments had different priorities: Marketing wanted more funds for advertising campaigns, while Sales wanted a larger portion for customer relationship management tools. After multiple discussions, a compromise was reached to allocate funds based on current performance metrics, with a plan to revisit the allocation after six months. (CMA Consulting, 2023b) ·ORBE ·2024 44 / 57 Discussion Scenarios Scenario 3: Interdepartmental Conflict Over Budget Allocation Scenario 3: Discussion Questions Discussion Questions 1. How can interdepartmental competition for resources impact overall business performance? 2. What negotiation strategies could have been used to reach an agreement more quickly? 3. What role does performance data play in resolving conflicts over resource allocation? ·ORBE ·2024 45 / 57 Discussion Scenarios Scenario 3: Interdepartmental Conflict Over Budget Allocation Scenario 3: Key Learning Points Key Learning Points This scenario illustrates the importance of transparent communication and the use of objective data when making decisions about resource allocation in a business. (CMA Consulting, 2023b) ·ORBE ·2024 46 / 57 Discussion Scenarios Scenario 4: Client-Vendor Contract Dispute Scenario 4: Client-Vendor Contract Dispute ·ORBE ·2024 47 / 57 Discussion Scenarios Scenario 4: Client-Vendor Contract Dispute Scenario 4: Context Context A client is dissatisfied with a vendor’s service due to repeated delays and poor quality of deliverables. The client threatens to terminate the contract, but the vendor offers a new plan to resolve the issues, including a discounted rate and a revised timeline. After negotiations, the client agrees to continue the contract with performance improvement measures in place. (CMA Consulting, 2023a) ·ORBE ·2024 48 / 57 Discussion Scenarios Scenario 4: Client-Vendor Contract Dispute Scenario 4: Discussion Questions Discussion Questions 1. What are the potential risks and benefits of continuing a relationship with a vendor who has not met expectations? 2. How could the vendor have approached the issue to prevent it from escalating to the point of contract termination? 3. Should the client have negotiated stricter penalties for future delays, or would this damage the working relationship? ·ORBE ·2024 49 / 57 Discussion Scenarios Scenario 4: Client-Vendor Contract Dispute Scenario 4: Key Learning Points Key Learning Points This scenario highlights the need for clear communication, trust-building, and flexible negotiation when managing ongoing business relationships. (CMA Consulting, 2023a) ·ORBE ·2024 50 / 57 Discussion Scenarios Scenario 5: Workplace Conflict Due to Cultural Differences Scenario 5: Workplace Conflict Due to Cultural Differences ·ORBE ·2024 51 / 57 Discussion Scenarios Scenario 5: Workplace Conflict Due to Cultural Differences Scenario 5: Context Context In a global company, two employees from different cultural backgrounds experience communication issues due to varying work styles and expectations. This leads to tensions and reduced collaboration. The HR department facilitates a mediation session where both employees openly discuss their differences, and strategies are developed to improve their working relationship. (?) ·ORBE ·2024 52 / 57 Discussion Scenarios Scenario 5: Workplace Conflict Due to Cultural Differences Scenario 5: Discussion Questions Discussion Questions 1. How can cultural differences create barriers to effective communication in the workplace? 2. What strategies can organizations implement to manage and leverage cultural diversity in teams? 3. How can HR play a more proactive role in preventing conflicts arising from cultural misunderstandings? ·ORBE ·2024 53 / 57 Discussion Scenarios Scenario 5: Workplace Conflict Due to Cultural Differences Scenario 5: Key Learning Points Key Learning Points This scenario showcases the importance of cultural awareness and communication skills in preventing and resolving conflicts within diverse teams. (?) ·ORBE ·2024 54 / 57 SUMMARY SUMMARY ·ORBE ·2024 55 / 57 SUMMARY fundamentals of conflict good and bad conflicts type of conflict goals (intentions) in conflict conflict resolution third party ·ORBE ·2024 56 / 57 Zdroje I Amason, A. C. (1996). Distinguishing the effects of functional and dysfunctional conflict on strategic decision making: Resolving a paradox for top management teams. Academy of management journal, 39(1), 123–148. CMA Consulting. (2023a). Client-vendor contract negotiation case study. CMA Consulting. (2023b). Examples of conflict negotiation in business: Resource allocation case study. Retrieved from https://www.cmaconsulting.com.au (Accessed: 2024-10-21) Marks, M., & Harold, C. (2011). Who asks and who receives in salary negotiation. Journal of Organizational Behavior, 32(3), 371–394. Program on Negotiation at Harvard Law School. (2014). Jpmorgan’s $13 billion settlement: A historic business negotiation. Retrieved from https://www.pon.harvard.edu (Accessed: 2024-10-21) Program on Negotiation at Harvard Law School. (2023a). Apple vs samsung: Negotiation case study. Retrieved from https://www.pon.harvard.edu (Accessed: 2024-10-21) Program on Negotiation at Harvard Law School. (2023b). Examples of business negotiation: Intellectual property and patent disputes. Retrieved from https://www.pon.harvard.edu (Accessed: 2024-10-21) Robbins, S. P., & Judge, T. A. (2017). Organizational Behavior. Pearson Education Limited. Thomas, K. W. (1992). Conflict and conflict management: Reflections and update. Journal of organizational behavior, 13(3), 265–274. Wolf, A. T., Yoffe, S. B., & Giordano, M. (2003). International waters: identifying basins at risk. Water policy, 5(1), 29–60.